Separation Agreement Confidentiality Clause

A non-prayer clause generally prohibits a former employee from addressing current employees with new employment opportunities. So now is not the time to bring together other employees – the Jerry Maguire style – to join your new company, which is happening just to compete in the same sector and in the same market as your former employer. Sometimes this clause also prohibits former employees, customers and customers from recruiting or hiring suppliers in a way that alters their business relationship with the former employer. We`d like to talk to you about your severance agreement, whether you`ve already signed it or are still considering it. Please contact our office to speak to one of our labour specialists. In all likelihood, you have a confidentiality clause in which you agree to keep the secret both on the fact that you have a severance agreement and on the specific terms and conditions. Your former employer wants to keep this a secret, as knowledge of your agreement can undermine its bargaining position vis-à-vis other employees. This clause generally prohibits you from disclosing information about your severance pay, but you will often find that it allows you to share information with your spouse, lawyer, tax advisor or any other financial agent. As a general rule, all information you can share must be accompanied by the restriction that the agreement is confidential. It is a one-way street.

You can also negotiate for a clause that limits that, within the employers` organization, knows the terms of your agreement, perhaps to those who have specific positions such as senior management or in limited departments such as human resources. These provisions may be vague, but if this protection is particularly important to you, you can negotiate a provision that Tom at the front desk or Judy in the shipping room does not know the salary structure of your severance contract or other personal data. It is important that you understand what you can and cannot do under the terms of your compensation agreement. Violation of these conditions, even unintentionally, could have serious consequences, such as the return of your severance pay.B. Expect the first redundancy agreement proposed to you to be extremely favourable to employers. So you either have to find what you want or find an employment lawyer to help you get the deal in a place where you feel comfortable signing it. In its broadest form, a confidentiality clause prohibits former employees from disclosing business or business secrets with people who do not yet have access to that information. In addition, confidentiality rules generally require you not to “use” the secret information you received for your former employer during your work.

If you were z.B. a seller who relies on a client list generated by the company to make sales, you certainly shouldn`t use that list to create your own customer base. The NLRB General Counsel Office found that confidentiality and non-participation clauses were legal. The confidentiality clause required the employee to “keep the terms of the separation agreement confidential, with the exception of consultations with a lawyer or family member.” The memo found that there was “clearly no vulnerability” given that the House has recently maintained such restrictions on confidentiality. Many companies offer severance agreements to workers when they are separated from employment under different circumstances.